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Motorola spins off SPS

Motorola announced today that they're spinning off their Semiconductor …

Motorola announced today that they're spinning off their Semiconductor Products Sector (SPS), the part of the company that makes processors like the G4, as a separate entity. Exact details on the nature of the spin-off are sparse at this point, but you can find more coverage at eWeek and Macworld, among others. From the eWeek coverage:

Motorola Inc. said Monday it will spin off its chip operations into a separate company, prepping the spin-off for a public offering at a future date.

The spin-off will give the company's Semiconductor Products Sector (Motorola SPS) the freedom and leverage to conduct its own business deals, using capital it can raise from the public markets. Current SPS President and CEO Scott Anderson will lead the new unit, which does not yet have a name.

Motorola officials said the uptick in the chip sector made the time right for Motorola to spin off its chip business, given that the SPS subsidiary has historically negotiated its own technology sharing agreements and other deals. Motorola said it was considering a public offering of a portion of the SPS unit, using the capital for acquisitions and to develop new intellectual property.

It's way too early to tell what this means for Apple, but a lot will depend on when the new company is spun off and how it fares. Apple is still dependent on Motorola for its laptop and midrange desktop chips, and it will be for some time. The G4 is a great laptop chip, and it'll be a while before the G5 can match it in MIPS/Watt. So we'll keep an eye on this story as it develops and keep you posted.